New reforms and austerity should boost confidence and growth in Finland over the longer term

Finland is getting a new conservative government formed by the Center Party, the Finns (populist) and the National Coalition. Juha Sipilä will be the new Prime Minister. 

The government strategy is reform oriented and fiscal policy will be tightened significantly. The government aims to adjust public finances by a total of EUR10bn, through a combination of short- and long-term measures. 

"The announced reforms and expenditure cuts are likely to be enough to satisfy rating agencies at this point but a successful implementation is crucial. Debt growth should be halted by 2021. Austerity will limit domestic demand in the short run but the structural measures should boost confidence and growth over the longer term." - notes Danske Bank